The Japanese postal, banking and insurance conglomerate now expects to post a net loss of 40 billion yen (U.S. $362.4 million) for its fiscal year ended March 31, 2016, after taking a 400.3 billion yen writedown on Australian logistics arm Toll Holdings.
Japan Post Holdings Co. expects to post a net loss of 40 billion yen (U.S. $362.4 million) for its fiscal year ended March 31, 2016, after taking a 400.3 billion yen writedown on Australian logistics arm Toll Holdings Ltd., the company said in a translated statement.
The Japanese postal, banking and insurance conglomerate acquired Toll for $6.5 billion Australian (U.S. $5.1 billion) back in May 2015 in an effort to expand its international freight forwarding, contract logistics, express delivery, intermodal rail, and trucking services.
The state-run firm had initially forecast a net profit of 320 billion yen for the year, which still would have been a 25 percent decrease from the previous fiscal year.
In the coming year, Japan Post plans to cut more than 1,700 jobs at Toll, but the company will remain a “core unit,” President Masatsugu Nagato said at a press conference, according to a report from Reuters.
“The price we paid for Toll was high,” Nagato said. “The writedown is intended to wipe the slate clean.”
Japan Post projects annual loss due to Toll writedown
